EnerSys (ENS) Q3 2026 earnings summary

Executive summary

• Q3 FY26 net sales increased 1–1.4% year-over-year to $919–$919.1 million, driven by strong price/mix and FX gains offsetting lower volumes, especially in Motive Power.

• Adjusted diluted EPS ex-45X reached a record $1.84, up 50% year-over-year; reported diluted EPS was $2.40, down 17% due to prior year 45X catch-up.

• Free cash flow was strong at $171–$171.3 million, with $94 million returned to shareholders via buybacks and dividends; $931 million remains authorized for buybacks.

• Strategic initiatives included cost management, plant realignment, and a major restructuring plan with an 11% workforce reduction, expected to yield $80 million in annualized savings.

• The acquisition of Bren-Tronics Defense LLC for $206.4 million expanded the Specialty segment's defense and portable power offerings.

Financial highlights

• Net sales for Q3 were $919–$919.1 million, up 1–1.4% year-over-year, with a 3% price mix benefit and 2% FX benefit, offset by a 4% volume decline.

• Adjusted gross profit was $278 million, down $22 million year-over-year, but up $19 million or 8% excluding 45X; adjusted gross margin ex-45X up 170 bps year-over-year to 26.3–26.4%.

• Adjusted operating earnings ex-45X rose 34% to $142 million, with a record adjusted operating margin of 11.7%, up 290 bps year-over-year.

• Adjusted EBITDA ex-45X reached $125–$160 million, up 30% year-over-year; margin was 13.6%.

• Free cash flow conversion was 189.5–190%, or 300% excluding 45X, and over 120% excluding receivables agreement impact.

Outlook and guidance

• Q4 net sales expected between $960 million and $1 billion; adjusted diluted EPS of $2.95–$3.05 (including $37–$42 million 45X), or $1.91–$2.01 ex-45X, up 10% year-over-year at midpoint.

• Full-year adjusted operating earnings growth ex-45X expected to outpace revenue growth, driven by OpEx savings, price mix, and improving Motive Power volumes.

• CapEx for fiscal 2026 expected at ~$80 million.

• The restructuring plan is expected to deliver $80 million in annualized savings, with $30–$35 million realized in fiscal 2026.